What are corporate bonds?

Corporate bonds are debt securities issued by corporations and bought by investors. They usually have higher interest rates than government bonds and are backed by the payment ability of the company. What Economic Factors Influence Corporate Bond Yields? What Is Dirty Price? Definition, Vs. Clean Price, and Example

How long do corporate bonds last?

Corporate bonds are issued by corporations and usually mature within 1 to 30 years. The bonds usually offer a higher yield than government bonds but carry more risk. Corporate bonds can be categorized into groups, depending on the market sector the company operates in.

How do corporate bonds work?

Corporate bonds are issued in blocks of $1,000 in face or par value. Almost all have a standard coupon payment structure. Typically a corporate issuer will enlist the help of an investment bank to underwrite and market the bond offering to investors. The investor receives regular interest payments from the issuer until the bond matures.